The manufacturing overhead budget at Rost Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,800 direct labor-hours will be required in September. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $53,120 per month, which includes depreciation of $4,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $78,880, $83,520. O $30,400. O$48,480.
The manufacturing overhead budget at Rost Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,800 direct labor-hours will be required in September. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $53,120 per month, which includes depreciation of $4,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: $78,880, $83,520. O $30,400. O$48,480.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The manufacturing overhead budget at Rost Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,800 direct labor-hours will be required
in September. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $53,120 per month, which includes depreciation of
$4,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing
overhead budget should be:
$78,880,
$83,520.
O $30,400.
O$48,480.
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